Workers’ compensation rates

Workers’ compensation rates represent the cost per $100 of payroll that employers pay for workers’ compensation insurance, as set by state regulators and insurers. State agencies like California’s Workers’ Compensation Insurance Rating Bureau publish annual rate recommendations based on claims data and industry risk classifications.

Insurers calculate final premiums using factors such as job classification codes (e.g. construction at $10.49 vs. Clerical at $0.30 per $100 in CA, 2023), employer claims history, and experience modification rates (EMR).

States including Texas, Florida, and New York update base rates annually to reflect changes in workplace injury frequency and severity. Employers with higher EMRs–such as 1.5 versus an average of 1.0–pay proportionally more than those with safer records.

Payroll audits adjust rates retroactively if reported wages differ from actuals during the policy period. Group rating programs allow qualifying small businesses (like Ohio manufacturers) to pool together for discounted rates up to 53%.

Assigned risk pools provide coverage at higher-than-average rates for businesses unable to secure voluntary market policies due to high-risk profiles or new operations without prior loss data, as indicated by https://yourinsurance.info. Online calculators from providers like The Hartford estimate current workers’ compensation rates by state, class code, and payroll size using real-time underwriting algorithms.